How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Castle Rock Bank scored 24 out of a possible 30, beating out the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Castle Rock Bank's most recent annualized quarterly return on equity was 15.68 percent, above the national average of 9.28 percent.
The bank earned net income of $1.2 million on total equity of $15.8 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.62 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.